RealtyShares Survey Reveals: Americans May Not Know Which Investment
Types Have Performed Best

Survey finds 40 percent of Americans aren’t sure which type of
investment has performed the best since 2000

April 20, 2017 09:00 AM Eastern Daylight Time

SAN FRANCISCO--(EON: Enhanced Online News)--RealtyShares,
a leading online marketplace for real estate investing, announced
findings from its Real Estate Investing Survey, conducted online among
over 2,000 U.S. adults in March 2017 by Harris Poll on its behalf, which
also reveals Americans’ appetite for investing in real estate.

“Residential real estate as an asset class is a $29
trillion market, and the commercial sector adds another $10
trillion”

The survey finds that 40 percent of Americans aren’t sure what type of
investment has performed the best since 2000 when asked to choose among
stocks, real estate, commodities, bonds, cash equivalents such as oil,
gold and cotton, and other. One-quarter of Americans (25%) thought that
stocks have been the top-performing asset class since 2000, while only
16 percent of Americans believed it has been real estate. Among the
remaining asset classes, 9 percent believed commodities have performed
the best, 6 percent chose cash equivalents, while 3 percent of those
polled thought bonds have performed the best.

This perception, likely fueled by the conditions around the recent
economic recession, gives stocks the edge when the results have
historically been mixed. Since 2000, real estate has outperformed the
stock market approximately 2:1, returning 10.71
percent annually compared to a 5.43
percent annual total return with the S&P 500 Index (range from Dec
31, 2000 - Dec 30 2016). The S&P has had the advantage more recently,
but both markets have recovered well with the S&P posting a 12.65
percent annual return since 2010 compared to a 11.37 percent annual
return for real estate (range from Dec 31, 2010 - Dec 30 2016). Keep in
mind historical returns may not recur or be achieved in the future.

“Real estate returns have kept pace with or even exceeded certain
investment options in the past and, yet, 85 percent of Americans aren’t
taking advantage of the opportunity to invest in this asset class,” said
Nav Athwal, CEO of RealtyShares. “Risks are inherent with all
investments, so diversification is important for any investor’s
portfolio. That the majority of Americans haven’t tapped into real
estate can speak to the lack of access that has been inherent in the
industry for a long time.”

When it comes to America’s appetite for investing in this asset class,
the survey shows that 48 percent of Americans would be more likely to
invest in real estate if there were technology available to make the
process easier, and that number grows to 63 percent among millennials
(18-34).

One of the common ways Americans start investing in real estate is to
invest or participate in a home flip, taking on the challenges of the
residential market. According to the RealtyShares survey:

Roughly two-thirds of American men and women agree that flipping a
home is a good way to make money (64 percent of men and 68 percent of
women).

Men are more likely than women to think they would be able to complete
a home flip (44 percent compared with 31 percent).

Adults ages 35-44 are more likely than those ages 45+ to think that
flipping a home is a good way to make money (77 percent versus 60
percent).

“Residential real estate as an asset class is a $29
trillion market, and the commercial sector adds another $10
trillion,” continued Athwal. “Over the last ten years, we’ve seen an
application of technology to real estate to make it easier for
homebuyers to research properties, and open up real estate investing to
a much wider audience. The next wave of tech companies, such as
RealtyShares, has the potential to fundamentally alter the way in which
we transact within this industry -- making it easier for someone to
raise capital, get a loan or efficiently put that capital to work as
part of a larger investment portfolio. Our vision is to continue closing
the gap between the way people invest in the stock market and the real
estate market.”

To learn more about RealtyShares and how to buy, invest or flip
property, please visit www.realtyshares.com.

Methodology

This survey was conducted online within the United States by Harris Poll
on behalf of RealtyShares from March 16-20, 2017 among 2,198 U.S. adults
ages 18 and older. This online survey is not based on a probability
sample and therefore no estimate of theoretical sampling error can be
calculated. For complete survey methodology, including weighting
variables, please contact Dave Claffey.

About RealtyShares

RealtyShares is transforming the real estate investment landscape by
connecting borrowers and sponsors to debt and equity capital from
accredited and institutional investors, across an array of financing
products. Private investments are highly illiquid and risky and are not
suitable for all investors. Through the RealtyShares website, these
investors can browse investment opportunities, perform due diligence,
invest online and have 24/7 access to an investor dashboard to watch how
their investments are performing. RealtyShares offers securities through North
Capital Private Securities Corporation, member FINRA/SIPC.
For more information on how to become a real estate investor or to seek
capital through the RealtyShares marketplace, please visit www.realtyshares.com.

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